During the Current Year,a Corporation Sells Equipment for $300,000

question 40

Multiple Choice

During the current year,a corporation sells equipment for $300,000.The equipment cost $270,000 when purchased and placed in service two years ago and $60,000 of depreciation deductions were allowed.The results of the sale are

• A)ordinary income of $90,000.
• B)Sec.1231 gain of $90,000.
• C)ordinary income of $60,000 and LTCG of $30,000.
• D)ordinary income of $60,000 and Sec.1231 gain of $30,000.

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Definitions:

National Saving

The total amount of savings generated within a country, typically calculated as the sum of private and public savings after accounting for investments and budget deficits.

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of assets, usually expressed as an annual percentage rate.

Net Capital Outflow

A contrast in the buying of foreign assets by residents of a country and the acquisition of its assets by non-residents.

NCO Curve

A hypothetical graphical representation that could relate to issues in international economics or capital flows, but requires clearer context for an accurate definition.